When does the obligation to contribute to the Engineering For Kids Regional Fund commence?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
be organized for the exclusive purpose of administering regional marketing programs and developing, subject to our approval, standardized promotional materials for use by the members in local marketing and promotion.
- 9.4.3. To the extent the Regional Fund is permitted or wishes to develop advertising, marketing, or promotional plans or materials, such advertising, marketing, or promotional plans or materials may not be used by a Regional Fund or furnished to its members without obtaining our prior approval pursuant to the procedures and terms as set forth in Section 9.7 below.
- 9.4.4. You must contribute each Period (commencing from the time we establish the Regional Fund) to the Regional Fund as provided in Sections 3.3 and 9.2, together with submitting such statements or reports as we, or the Regional Fund with our prior written approval, may require. If we request, you must submit your Regional Fund contribution and reports to the Regional Fund directly to us for distribution to the Regional Fund.
- 9.4.5. Unless we designate otherwise in writing when we establish a Regional Fund, we will administer the Regional Fund in the same manner as described in Section 9.3 regarding the System Creative Fund.
- 9.4.6. Although once established, each Regional Fund is intended to be of perpetual duration, we maintain the right to terminate any Regional Fund. A Regional Fund will not be terminated, however, until all monies in that Regional Fund have been expended for marketing and/or promotional purposes.
**9.5.
Source: Item 23 — RECEIPTS (FDD pages 53–138)
What This Means (2025 FDD)
According to Engineering For Kids' 2025 Franchise Disclosure Document, franchisees must contribute to the Regional Fund each period, starting from when Engineering For Kids establishes the Regional Fund. This contribution is outlined in Sections 3.3 and 9.2 of the agreement. Franchisees are also required to submit any statements or reports that Engineering For Kids, or the Regional Fund with Engineering For Kids' prior written approval, may require.
Engineering For Kids may request that franchisees submit their Regional Fund contributions and reports directly to them for distribution to the Regional Fund. Unless Engineering For Kids specifies otherwise in writing when establishing a Regional Fund, they will administer the Regional Fund in the same manner as described in Section 9.3 regarding the System Creative Fund.
It's important to note that if Engineering For Kids has already established a Regional Fund for the geographic area in which a franchisee's business is located when they commence operations, the franchisee must immediately become a member of that Regional Fund. If a Regional Fund is established during the term of the Franchise Agreement, the franchisee must become a member within thirty days after the date on which the Regional Fund commences operation. Franchisees will not be required to be a member of more than one Regional Fund.